Illiquidity Discount
Short definition
An illiquidity (marketability) discount is the value cut because the share cannot be turned into cash in a reasonable time. Listing status, lock-ups, a thin market and sale restrictions grow it.
Detailed explanation
DLOC is lack of control; DLOM is lack of cash conversion. A private-company minority slice carries both — adding them risks double counting.
Restricted-stock studies give a range, not a universal percentage. Listing reports must state the basis.
Why it matters for the CFO
A private deal and a locked-up share cannot be compared with a liquid blue-chip P/E.
How to read it
A 15–30% range is often cited in thin markets; that is not a universal rule — the deal and the restriction set it.
Numerical example
Liquid minority value 800 mn TL, DLOM 15% → illiquid value ≈ 680 mn TL.
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Definitions are educational. They are not investment, credit or tax advice.